The International Monetary Fund believes that the US is posing the main threat to global economic recovery.
The US economic influence on other countries is so large that any trouble immediately affects other economies. “When the US sneezes, the world catches a cold,” analysts often say. In fact, this is true. Most countries depend on the US economy in this or that way. At the moment, during the pandemic, there are a lot of concerns about the future economic situation and most economists are worried about the US.
The IMF has recently said that “the country’s troubled response to the coronavirus pandemic emerges as a chief risk to any sustained global recovery.” A drop in the US consumer activity may significantly weaken demand and slow down the global recovery. The main reason is that the US economy accounts for about a quarter of world gross domestic product. Even the world’s leading economies depend on the US market.
It is quite possible that the state financial support will help to cope with the crisis. The White House has already allocated $3 trillion to save the economy. At the same time, the US GDP lost 5% in the first quarter of 2020. It is the largest decline since the 2008 financial crisis.
